Dubai government-owned developer Limitless has started construction and unit sales of its mixed-use joint venture project in Moscow, it was announced on Thursday.
Construction of phase one of Zagorodny Kvartal, Russian for 'Country Quarter', has started with the project consisting of 700 apartments and 46 townhouses.
When complete, the development will include 14,000 residences.
The 111 hectare site is located 24km northwest of the Russian capital, alongside the Moscow Canal.
Ownership of Limitless was transferred to the Dubai government in July last year as part of Dubai World’s US$24.9bn debt restructuring.
The Zagorodny Kvartal project is part of a joint venture with Moscow-based RDI Group.
“The launch of Zagorodny Kvartal reinforces Limitless’ commitment to Russia and our partner, RDI Group. Together, we are bringing a new style of development to Moscow: a walkable community that allows residents to step out of the city and into nature,” said Saeed Ahmed Saeed, CEO of Limitless.
The Dubai developer earlier this month proposed to pay banks interest in its own US$1.2 billion restructuring, reversing its previous refusal, two bankers with knowledge of the matter said.
Limitless is one of several companies in Dubai seeking to restructure debt after property prices and asset values slumped in the Arabian Gulf business hub and credit markets froze.
Dubai World, one of the three main state-controlled holding companies, reached a deal last March with about 80 banks to delay payments on US$25bn of debt, while Dubai Group is seeking to restructure US$6bn of bank debt.
Limitless, whose projects include the mixed-use Downtown Jebel Ali development in Dubai and another development in Riyadh, Saudi Arabia, raised the loan in dollars and UAE dirhams in 2008 from a group of 18 banks, according to a company statement at the time.
Emirates NBD and National Bank of Abu Dhabi helped raise the loan, while Royal Bank of Scotland Group was among the lenders.